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Viant Technology Inc. (DSP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered record second-quarter results: revenue $77.85M (+18% YoY), contribution ex-TAC $48.37M (+16% YoY), and adjusted EBITDA $11.28M (+18% YoY); adjusted EBITDA margin was 23% and slightly above the midpoint of guidance, while revenue and contribution ex-TAC finished within guidance ranges .
  • Mix continues to shift toward CTV: CTV accounted for ~45% of total platform ad spend (a Q2 high), while emerging channels (CTV, streaming audio, DOOH) reached ~55% of spend; video represented ~60% of spend .
  • Management flagged temporary headwinds: three advertisers paused campaigns due to U.S. economic policy actions (~300 bps revenue growth and ~400 bps contribution ex-TAC growth headwinds in Q2), and Q3 will lap elevated political comps and an agency-client loss (expected ~1,200 bps revenue and ~1,000 bps contribution ex-TAC headwinds to Q3) .
  • Guidance for Q3 2025: revenue $83.5–$86.5M, contribution ex-TAC $51.0–$53.0M, non-GAAP opex $37.0–$38.0M, adjusted EBITDA $14.0–$15.0M; management emphasized a new $250M gross ad-spend pipeline with large U.S. advertisers, largely a 2026 catalyst .
  • Capital allocation supports the equity story: $50.2M repurchased since May 2024 (3.8M shares) including $28.5M YTD through Aug 8; cash & equivalents stood at $172.8M and no debt at quarter-end .

What Went Well and What Went Wrong

  • What Went Well

    • Strong execution and records: “Viant delivered record second quarter results, with revenue, contribution ex-TAC and adjusted EBITDA each increasing by a strong double-digit rate year-over-year” .
    • CTV momentum: “Generated record CTV advertiser spend in the second quarter with CTV accounting for approximately 45% of total ad spend” and “CTV spend reached an all time high for a second quarter” .
    • AI product cadence and efficiency: Launched ViantAI “AI Measurement and Analysis”; adjusted EBITDA +18% YoY despite ongoing investments, and contribution ex-TAC per employee +10% YoY signaling productivity gains .

  • What Went Wrong

    • Macro policy headwinds: Three advertisers paused campaigns due to “economic policy actions,” creating ~300 bps revenue and ~400 bps contribution ex-TAC growth headwinds in Q2 .
    • Q3 specific transitory headwinds: Lapping high political spend and an agency client loss (seasonally summer-heavy advertiser) will pressure Q3 growth by ~1,200 bps revenue and ~1,000 bps contribution ex-TAC .
    • Operating expense growth from M&A: Non-GAAP opex +16% YoY including investments tied to IRIS.TV (Nov 2024) and Lockr (Feb 2025); organically, opex +10% YoY but integration still weighs on near-term margin scaling .

Financial Results

Results progression and YoY/Seq context

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$65.866 $70.642 $77.853
Gross Profit ($M)$30.744 $30.562 $35.883
Contribution ex-TAC ($M)$41.558 $42.729 $48.372
Adjusted EBITDA ($M)$9.600 $5.402 $11.283
GAAP Diluted EPS$0.00 $(0.07) $0.02
Non-GAAP Diluted EPS$0.08 $0.03 $0.09
Adj. EBITDA as % of Contribution ex-TAC23% 13% 23%

Q2 2025 vs estimates (S&P Global)

MetricConsensusActualDelta
Revenue ($M)$78.061*$77.853 ($0.208)
Non-GAAP Diluted EPS$0.092*$0.09 ($0.002)

Values marked with * were retrieved from S&P Global.

KPIs and Mix

KPIQ2 2024Q1 2025Q2 2025
CTV as % of total ad spend~45% >45% (eclipsed) ~45%
Emerging channels (CTV, audio, DOOH) as % of spend50% —~55%
Video (incl. CTV) as % of spend——~60%
Operating cash flow ($M)—$(4.452) $20.934
Cash & cash equivalents ($M)—$173.878 $172.816
Share repurchases (cumulative since May 1, 2024)—$46.5M (thru May 2, 2025) $50.2M (thru Aug 8, 2025)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance / ActualChange
Revenue ($M)Q2 2025$77.0–$80.0 $77.9 actual In-line (within range)
Contribution ex-TAC ($M)Q2 2025$47.5–$49.5 $48.4 actual In-line (within range)
Non-GAAP OpEx ($M)Q2 2025$37.0–$38.0 $37.1 actual In-line (within range)
Adjusted EBITDA ($M)Q2 2025$10.5–$11.5 $11.3 actual Slight beat vs midpoint
Revenue ($M)Q3 2025N/A$83.5–$86.5 New
Contribution ex-TAC ($M)Q3 2025N/A$51.0–$53.0 New
Non-GAAP OpEx ($M)Q3 2025N/A$37.0–$38.0 New
Adjusted EBITDA ($M)Q3 2025N/A$14.0–$15.0 New

Notes: Company also disclosed that Q3 growth will face unusual comps and an agency-related advertiser loss concentrated in Q3 seasonality .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
CTV & Direct AccessRecord CTV spend; IRIS.TV acquisition to enhance content-level targeting CTV >45% of ad spend; secular tailwinds CTV ~45% of spend; Q2 CTV spend at a Q2 high Sustained strength
ViantAI adoptionLaunched ViantAI; strong initial demand Early-stage adoption; beat guidance with AI momentum Launched AI Measurement & Analysis; AI bidding widely adopted; efficiency gains Expanding features/adoption
Addressability (Household ID, IRIS_ID)Household ID + IRIS_ID as key differentiators Continued ramp in utilization Household ID matches and IRIS_ID underpin CTV performance; IRIS-enabled reporting launched Deepening integration
Macro / policy——Three advertisers paused due to economic policy actions; Q3 political comp headwind Near-term headwinds, framed as temporary
Competitive dynamics (walled gardens)——Management argues buy-side only DSP passes savings; sees Amazon threat vertical-specific; investing to address SMB market Heightened commentary; positioning clarified
Pipeline / Enterprise——>$250M gross ad-spend pipeline with major U.S. advertisers; incremental and 2026-timed Building 2026 catalyst
M&A / IntegrationsIRIS.TV acquired Lockr acquired (Feb 2025) IRIS-enabled content report & pre-bid; LG Ad Solutions integration Productization progressing
Capital allocation—Repurchase authorization +$50M; $46.5M bought through May 2 $50.2M cumulative repurchases; ~$49.8M remaining as of Aug 8 Continued buybacks

Management Commentary

  • CEO on performance and strategy: “Viant delivered record second quarter results... We continue to execute against our strategic priorities by further advancing our CTV Direct Access premium publisher program and expanding... Household ID and IRIS_ID... launched... ViantAI... AI Measurement and Analysis...” .
  • CFO on execution and pipeline: “Adjusted EBITDA for Q2 was $11.3 million... We are encouraged by a robust pipeline of new business opportunities... associated with major U.S. advertisers...” .
  • Product/AI differentiation: “We were the first... to launch a real AI product... enterprise team to go after these larger customers... huge opportunity in the large customer end of the market because they see... cost efficiencies... and increased performance” .
  • Value-based pricing and competitive stance: “With AI bidding... up to 46% savings in media costs... we pass most of the value to the customer… benefit of a buy-side only DSP that works on their behalf only” .
  • Q3 setup and beyond: “Two temporary and non recurring factors... lapping a high political ad spend comp... agency client lost an advertiser... combined... pressure revenue growth by approx 1,200 bps... contribution ex-TAC by approx 1,000 bps in Q3... potential to exhibit accelerating growth throughout 2026” .

Q&A Highlights

  • Differentiation and go-to-market: Management emphasized Household ID-led addressability and ViantAI suite breadth; building an enterprise sales team while core team serves mid-market .
  • Pipeline: The cited ~$250M pipeline is incremental gross ad spend, largely 2026 ramps as current DSP commitments at large brands expire; some wins already booked .
  • AI module cadence: Targeting AI Planning adoption to mirror AI Bidding over two years; AI Measurement & Analysis expected to be daily/weekly utility; long-term aim is “full self-driving” decisioning with 100% adoption over two years .
  • Pricing and growth: Value-based pricing passes savings to customers (up to ~46% media cost savings) to drive volume and spend; framed as competitive advantage vs walled gardens .
  • Q3 headwinds clarified: Political comp ~4 pts to contribution ex-TAC; agency-client loss seasonally concentrated in Q3 with minimal impact in Q4 and beyond; paused advertisers from Q2 not assumed to return in Q3 guidance .

Estimates Context

  • Q2 2025 came in essentially in line with S&P Global consensus: revenue $77.85M vs $78.06M* and non-GAAP diluted EPS $0.09 vs $0.092*; adjusted EBITDA met company guidance but is not directly comparable to S&P “EBITDA” constructs .
  • Q3 2025 consensus revenue of ~$85.53M* sits within guidance ($83.5–$86.5M), implying management’s range brackets street expectations; consensus EPS of ~$0.132* aligns with the outlook for higher sequential profitability alongside a guided adjusted EBITDA margin of ~27–28% .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • CTV leadership and addressability assets (Household ID, IRIS_ID) continue to compound, with CTV ~45% of spend and record Q2 CTV volumes—supporting above-market growth durability .
  • The $250M gross ad-spend enterprise pipeline is a 2026 story; near-term, Q3 is transitorily pressured by political comps and an agency-client loss concentrated in summer seasonality—management expects limited carryover impact into Q4 .
  • ViantAI is broadening monetization vectors (bidding, planning, measurement, decisioning) while lowering switching costs and expanding TAM down-market (SMBs) and up-market (enterprise), a potential multi-year growth flywheel .
  • Q2 delivered within revenue/Contribution ex-TAC guidance and a modest adjusted EBITDA beat vs midpoint; the company reiterated cost discipline (non-GAAP opex down 1% QoQ) even as it integrates IRIS.TV and Lockr .
  • Balance sheet strength (cash $172.8M, no debt) and ongoing buybacks ($50.2M since May 2024; ~$49.8M remaining) provide downside support and optionality for opportunistic capital deployment .
  • Near-term trading: Expect focus on Q3 headwinds vs guidance achievability and any updates on the paused advertisers; medium term, watch enterprise pipeline conversion, AI module adoption cadence, and further CTV partnerships (e.g., LG Ad Solutions, IRIS-enabled pre-bid) as catalysts .